Japan Press Weekly

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2013 July 24 - 30 [NUCLEAR CRISIS]

Unprofitable leisure complex built in Genkai Town with nuclear energy-related money

Kyushu Electric Power Company, operator of the Genkai Nuclear Power Plant, and the town hosting the Genkai plant have constructed leisure facilities to improve the image of atomic energy with money mainly obtained from a central government subsidy for nuclear power generation.

It exhibits the interdependent relationship between the utility seeking to resume operations of its suspended nuclear reactors and the municipality depending on nuclear-related subsidies.

The newly-opened Genkai Town Next-Generation Energy Park includes a barbecue space and an outdoor concert hall located next to the existing atomic energy promotion complex.

The brand new park requires 110 million yen annually for operating costs, but its projected annual revenue is only 20 million yen.

The Genaki Town government says there is no hope of turning it into a profit making venture and will have to cover the 90 million yen in expected losses every year.

Owning one-third of the 34,000 sq.m park, the town authorities already poured 1.53 billion yen into the new park project. The power company, on the other hand, has been secretive about its contribution to its new facility.

Japanese Communist Party member of the Genkai Town Assembly Fujiura Akira pointed out that the use of the town’s tax revenues for the Next-Generation Energy Park will aggravate the fiscal viability of the town. Citing another unprofitable hot springs facility, he said, “The new park will follow in the footsteps of the money-losing spa center Pallair.”

About 60% of the 1.73 billion yen construction cost for Pallair came from nuclear energy-related subsidies. The municipality has spent 30 million yen a year to make up for the deficit of Pallair since its establishment in 2003.

The town finances are heavily dependent on tax revenues from the Genkai plant operator and the nuclear-related subsidies, which together account for 60 % of the town’s annual revenues of 6.3 billion yen.

Townspeople, however, want their place to be free from dependence on nuclear power subsidies. They call for utilization of the local natural environment to promote agriculture and fisheries to maintain the town’s fiscal strength.